Tanker Rates: How High Is Too High?

Monday, July 31, 2000

Current oil tanker rate highs are an aberration caused by a spike in oil demand and will fall sharply, shipping analysts said. In a report, Drewry Shipping Consultants said the rise in rates in 2000 represents an aberration in the current market cycle. Current sky-high rates are being caused -- by and large – by increased demand for oil in the second quarter of this year equivalent to about 20 additional VLCCs, the analysts said.